Dear customers, partners and friends of EEX, 

While the summer period is traditionally quieter, environmental markets have continued to develop at a strong pace. Since our last newsletter, EEX has successfully launched the German nEHS auctions, attracting strong participation and considerable customer interest. I would like to sincerely thank all participants and partners who contributed to this milestone. Preparations are now continuing for the 2027 nEHS framework and the longer-term transition to EU ETS2.

At European level, EEX is progressing with the implementation of CAP4 primary auctions. The revised 2026 and new 2027 EUA auction calendars have now been published, providing greater visibility on future auction schedules and volumes. The EU ETS2 auction calendar is expected in September, ahead of the planned start of early auctions in January 2027. The admission process for EU ETS2 auctions and secondary market products is already open, and we welcome participants interested in supporting the early development of liquidity.

Our secondary markets also continue to develop positively. EUA trading volumes remain significantly above the previous year, while Guarantees of Origin Futures have surpassed the milestone of 100 TWh traded since launch, reflecting growing participation and product diversification.

Looking ahead, our focus will be on completing the 2026 nEHS auction cycle, preparing customers for EU ETS2 and further strengthening liquidity across EUA, UKA and GO markets. As everyone returns from the summer period with renewed energy, we look forward to meeting many of you at our upcoming events and continuing the conversation in person.

EEX remains committed to developing transparent, liquid, and reliable environmental markets together with customers and partners.

Please scroll below to see further details.

Steffen Köhler 

CCO | EEX

July 2026 saw the successful launch of nEHS auctions, with strong interest from customers. The auction on 12 August 2026 attracted the highest number of successful bidders to date, with 115 different exchange participants submitting bids. The final auction in 2026 will take place on 9 September 2026.

 

Following the auctions, participants will be able to purchase nEHS certificates with vintage 2026 in unlimited quantities in November and December 2026 for EUR 68, and until August 2027 for EUR 70 (limited to 10% of the compliance account holding as of 31 December 2026).

 

nEHS auctions are expected to continue within the price corridor of EUR 55 to EUR 65 in 2027. On 12 August 2026, the German Federal Cabinet approved legislation defining the framework for next year. Please note that the regulation is expected to be finalised by Q4 2026.

 

From 2028 onwards, the compliance obligations for most companies currently covered by the German nEHS will transition to EU ETS2 at the European level. EEX already offers EU ETS2 Futures contracts for companies seeking to hedge their future EU ETS2 exposure.

The UK carbon market continues to evolve following the launch of EEX UKA Futures and Options. Market makers are supporting liquidity through regular quoting, while the inclusion of domestic maritime activities in the UK ETS from 1 July 2026 has further broadened the scope of the scheme.

The planned linkage between the UK ETS and EU ETS remains an important focus for the market and could have significant implications for market access, liquidity and price formation. EEX will continue to work closely with market participants to support the development of a transparent and competitive UKA market.

UK ETS policy developments remain a key market driver. EEX continues to monitor UK-EU ETS linkage discussions and broader UK ETS reforms and expects these developments to continue shaping market expectations.

Read more about our UKA offering at UK ETS Futures and Options, or contact sales@eex.com to learn more about incentive schemes for liquidity providers.

On 17 July 2026, the European Commission presented its highly anticipated proposal for the review of the EU ETS Directive, accompanied by a comprehensive impact assessment. In line with the 2040 target of a net 90% emissions reduction, the proposal introduces a number of significant changes to the system, including the integration of domestic carbon removals and provisions for the use of international carbon credits.

The proposal also expands the scope of the EU ETS, reviews key Market Stability Reserve parameters and introduces additional conditionalities for free allocation. According to analysts, the proposed changes would extend the long-term trajectory of the system until approximately 2048 while incorporating domestic removals into the framework.

Auctioning remains the default allocation method for allowances. Under the proposal, the waste incineration sector would gradually be included in the auctioning framework from 2031 onwards. The same principle would apply to the expanded scope of the maritime and aviation sectors.

The proposal has already prompted strong reactions from civil society, industry and institutional stakeholders. The next phase of discussions and negotiations will now begin, with the European Parliament and the Council aiming to reach an agreement during the first quarter of 2027. EEX looks forward to engaging with market participants throughout this process and welcomes your assessments, perspectives and questions, please contact Ellen de Vocht our Head of EU Representation in Brussels.

In addition, the European Securities and Markets Authority (ESMA) published its annual Carbon Market Report in July. ESMA once again considers the EUA market to be resilient and to be functioning well, while highlighting the important role of intermediaries in supporting market activity. The report provides valuable insights into market functioning and participant dynamics.